Companies in China advised to cease purchasing Nvidia's AI processing units
In a move that marks the latest flare-up in Beijing's trade war with Washington, the Chinese Cyberspace Administration (CAC) has directed ByteDance Ltd (字節跳動) and Alibaba Group Holding Ltd (阿里巴巴) to terminate their testing and orders of Nvidia's RTX Pro 6000D, according to reports by the Financial Times.
The RTX Pro 6000D, Nvidia's newest graphics processing unit for use in AI tailored for the Chinese market, has received lukewarm demand, with some major tech firms opting not to place orders. However, several companies had indicated they would order tens of thousands of the RTX Pro 6000D and had started testing and verification work with Nvidia's server suppliers before being told to stop by the CAC.
The action against Nvidia Corp follows China's accusations against the US company of contravening its anti-monopoly law. The CAC's new order is part of a broader push by China to cut reliance on US technology, a response to successive US administrations restricting China's access to advanced chips.
The new ban is stronger than the earlier guidance from regulators that focused on Nvidia's H20, the previous version of its China-tailored AI chip. The US company, Nvidia Corp, saw its shares down by 1 percent in premarket trading following the order.
The RTX Pro 6000D did not receive immediate responses for comment from Nvidia, Alibaba, and Bytedance upon Reuters' requests. A photo related to this news was taken by Reuters.
This action is not the first time China has pressured domestic firms to turn away from US suppliers. The Chinese Internet regulator has also instructed top technology firms to cancel existing orders of Nvidia Corp's AI chips. The CAC's action against Nvidia's RTX Pro 6000D follows similar actions against other US technology products.
The Financial Times reported this action on a certain day, days after China accused Nvidia Corp of contravening its anti-monopoly law. The action against Nvidia Corp marks the latest escalation in the ongoing trade war between China and the US.
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